You have to believe that Google cares about TV and video content. They've made so many moves in this direction: YouTube, movies and TV on Google Play, the deal for Girls (or whichever show it is) to premiere on YouTube before anywhere else…
The challenges Netflix has are three-fold as I see it:
1. They only have enough cash at hand to do, what, five pieces of amazing original programming each year? Six? The halo isn't big enough to make them huge like YouTube is huge.
2. Google has an insane amount of cash. They could really "unify the division" by creating the first truly undisputed king of content streaming (which would just be YouTube + licensed movies and TV shows with a premium version and a heavily ad-supported version). They could also finance new shows.
3. Content owners can see Netflix's share price. As soon as they start doing well the price will go up on content licenses. Unless Netflix negotiate 5, 10, or 15 year terms they aren't going to be able to avoid arbitrary price hikes.